Brazil to end multimillion-dollar budget deficit from 2024, says planning minister

As announced by the Minister of Planning and Budget, Simone Tebet, the Brazilian Government will end the multimillion-dollar fiscal deficit in its accounts from next year.

For this year, the Government’s forecast is for a primary deficit of R$107.6 billion (US$ 20.6 billion). However, the Government is working with a new fiscal framework that should help to cancel the deficit in its accounts.

“Many believe the great challenge is leaving the fiscal deficit at zero. It is not because we will end the deficit already from the end of next year. This is a goal, not only of the Ministry of Planning and Budget but also of the Ministry of Finance,” Tebet said.

According to her, the fiscal reform that the Government is preparing aims at ending the budgetary deficit “because it deals not only with revenues, but also with expenditures, looking at stabilizing the debt/GDP ratio, but not only thinking about increasing revenues without increasing the tax burden but also with the commitment to end the deficit”, she commented.

Brazil has recorded a primary deficit in its accounts since 2014.

However, Tebet did not want to say whether already in 2024 theGovernmentt will have a surplus in its reports, that is, that revenues exceed expenditures.

“I am aiming at zeroing the deficit. Whether we will have a surplus or not in 2024, I cannot say, I cannot say because I signed a confidentiality clause, the penalty for which is one year’s salary of a minister,” he concluded.